Risk

What is Volatility?

How wildly a stock's price swings

Full Explanation

High volatility means the stock price jumps up and down a lot. Low volatility means it moves slowly and steadily. More volatile = more risk AND more potential reward.

Real-World Example

Bitcoin is very volatile. A Treasury bond is very low volatility.

Related Risk Terms

Short Selling

Betting that a stock will go down

Margin

Borrowing money from your broker to buy more stocks

Hedge

An investment that offsets losses in another

Diversification

Not putting all your eggs in one basket

View all Risk terms →

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